Platinum prices have been on an interesting journey in 2025, showing a strong upward trend after some years of stagnation and decline. At the start of 2024, platinum was trading just above $1,000 per ounce but dipped slightly during the year. However, in 2025, prices surged by over 20%, reaching around $1,096 per ounce by late May—marking a two-year high.
This rally is mainly driven by persistent supply shortages and growing demand from key markets like China. Mining output has been falling; South Africa—the world’s largest platinum producer—is seeing reduced production levels. Recycling rates are also down, which means less metal is being returned to the market. As a result, total platinum supply for 2025 is expected to drop about 4%, hitting its lowest point in five years.
On the demand side, China stands out with a sharp increase in imports of platinum bars and jewelry. In April alone, Chinese imports jumped nearly 50% compared to March—the highest monthly volume seen in a year. This surge reflects investors looking for alternatives as gold prices remain high and platinum becomes more attractive both as an investment and for industrial uses like hybrid vehicle manufacturing.
The market deficit—where demand exceeds supply—is projected to continue through at least 2029 at significant levels averaging around nine percent annually. These deficits are shrinking above-ground stocks (the reserves held outside mines), which now cover less than four months of global consumption—a tight cushion that tends to push prices up when any disruption occurs.
Looking ahead into mid-2025 and beyond, forecasts suggest that platinum could climb toward $1,400 per ounce by mid-year and possibly reach $1,500 within the next year or so if current trends persist. However, some analysts caution that new positive momentum will be needed to break through certain price barriers near $1,300–$1,320 levels before aiming higher.
Economic uncertainties worldwide add complexity: trade tensions and slower growth expectations might temper industrial demand or investor appetite at times but haven’t yet stopped this rally fueled by structural supply constraints combined with rising interest from investors seeking precious metals beyond gold.
In short: Platinum’s price story today is shaped by tightening supplies due to mining cuts and recycling declines alongside surging Chinese buying interest—and these forces together create strong upward pressure on prices for now with potential further gains if deficits remain entrenched or widen further over coming years.